What is the MIM/3Pool Metapool?
The MIM/3Pool metapool is a Curve factory pool that pairs Abracadabra's Magic Internet Money (MIM) stablecoin with Curve's 3Pool LP tokens. This metapool design enables MIM trading against DAI, USDC, and USDT in a single transaction.
Understanding Metapools
Curve metapools are a capital-efficient design:
- One asset paired with a base pool LP token
- Enables trading against multiple assets
- Shares base pool liquidity
- More gas-efficient than multiple pairs
In this case, MIM pairs with 3CRV (the 3Pool LP token), giving access to DAI, USDC, and USDT liquidity.
What is MIM?
Magic Internet Money (MIM) is Abracadabra's stablecoin:
- CDP-Based: Minted by depositing collateral
- Interest-Bearing Collateral: Can use yield-bearing assets
- Multi-Chain: Available on multiple networks
- Degenbox Integration: Advanced yield strategies
MIM gained popularity during the 2021 DeFi boom for its flexible collateral options.
Pool Mechanics
Trading through this metapool:
- MIM swaps directly to 3CRV
- 3CRV can unwrap to underlying stables
- Single-transaction routing to final asset
- Efficient slippage across the hop
Historical Context
The MIM metapool has been significant in Curve's history:
- High TVL during 2021-2022
- Major source of trading volume
- Part of the "Curve Wars" for gauge emissions
- Connected Abracadabra ecosystem to Curve
Yield Analysis
LPs earn from:
- Trading fees on MIM swaps
- Arbitrage activity maintaining peg
- Volume from MIM ecosystem activity
The 0.31% APY reflects current trading volumes. Historical yields have varied significantly.
Abracadabra Ecosystem
Abracadabra Money offers:
- MIM stablecoin
- Cauldrons (lending markets)
- SPELL governance token
- Multi-chain deployment
Risks
- MIM Depeg Risk: Collateral or protocol issues
- Abracadabra Risk: Protocol vulnerabilities
- Historical Concerns: Past turbulence in MIM ecosystem
- 3Pool Exposure: Underlying stablecoin risks
- Smart Contract Risk: Factory pool implementation